HMRC has tightened up the process for claiming tax deductible employment expenses following a series of high-profile scandals.
If you incur job-related expenses of up to £2,500 which are not fully reimbursed by your employer you may be able to claim tax relief. For expenses to be eligible for relief they must have been incurred wholly, exclusively and necessarily in the performance of the duties of your employment.
Historically, the ‘pay now check later’ process meant that tax refunds were paid out automatically before HMRC had reviewed the legitimacy of the claim. In response to a growing number of fraudulent claims, HMRC suspended the processing of some employment expense claims on 10.6.24 while it considered the best way to proceed.
From 14.10.24 taxpayers are no longer able to submit a PAYE employment expense claim digitally or over the phone. Instead, claims for employment expenses of up to £2,500 must be made using printed form P87 and accompanied by supporting evidence. This could be receipts, a copy of your mileage log, or any other proof of amounts you have paid.
You have four years from the end of the tax year to make a claim, so for the current tax year HMRC must receive your claim by 5.4.29. For claims relating to the 2020-21 tax year, claim forms and evidence must be posted in time to reach HMRC by 5.4.25.
Claims for flat rate ‘uniform, work clothing and tools’ expenses can be made online from 31.10.24. For employment expenses over £2,500 you need to submit a self assessment tax return to claim the tax relief. We can help you with this.
If you have incurred employment expenses which are not fully reimbursed by your employer, we can help you gather sufficient evidence and submit a claim.
